User-centric, Unified, Universal ‘Finternet’: Key takeaways from Nilekani’s 2nd Global Fintech Fest speech in 14 months

Showcasing the country’s ‘Finternet’ vision as “a structured, scalable and compliant approach to tokenisation and digital asset management”, IT czar Nandan Nilekani, on Wednesday, spoke about the innovative digital infrastructure framework for a second time at the annual Global Fintech Fest in Mumbai. Nilekani had introduced Finternet as “a user-centric, unified and universal” solution aimed at “unlocking exponential value” through the convergence of technology during his keynote address at the same event in August last year.

Nilekani — co-founder and chairman of Infosys — envisions Finternet as a universal, interconnected platform that leverages tokenisation, AI and digital infrastructure to create a seamless financial ecosystem. 

He also served as the founding chairman of the Unique Identification Authority of India (UIDAI), which issues the 12-digit personal identification number called Aadhaar.

What is Finternet? When will it be a reality?

According to Nilekani, as a new approach to global finance, Finternet is defined by the three ‘U’s’: 

• User-centric
• Unified
• Universal

It is a digital infrastructure framework that combines the regulated world with tokenisation while keeping the user at the centre.

The visionary step aims to create an interoperable financial ecosystem that connects multiple financial systems globally. 

Nilekani said that by 2026, the initiative is expected to expand across 20 ecosystems in four continents “with live implementations across multiple sectors”. 

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What is tokenisation, and how could it transform market dealings?

Nilekani explained that any asset — be it stocks, bonds, gold, real estate or automobiles — could be digitised using a regulated framework. 

Tokenisation is the process of digitising and fractionalising tangible assets for easier trading. Under tokenisation, a ‘token’ represents the real life unit of an underlying asset that can be traded or transferred digitally.

Typically, tokenisation uses blockchain or distributed ledger technology as the underlying platform, reducing dependence on single intermediaries, cutting costs and lowering fraud risks.